Is a price increase on the horizon for US domestic HRC?

Better-than-expected order activity and the possibility of higher prices both upstream and downstream has worked to bump up US domestic hot rolled coil prices by $1.00 cwt. ($22/mt or $20/nt) to $33.00-$34.00 cwt. ($727-$750/mt or $660-$680/nt) ex-Midwest mill in the last week. Sources tell SteelOrbis that US scrap dealers are considering pushing prices up (although not until possibly September), and producers of downstream products such as OCTG might take advantage of the recent favorable trade ruling and lift prices on that end as well. As such, an official price increase for HRC in the realm of $1.00 cwt. is a strong possibility soon, sources say.

Relative stability in the market is also expected after the Severstal shake-up; the Russian-based steelmaker officially pulled out of the US market, dividing its assets between AK Steel and Steel Dynamics. Sources say they’re pleased the mills have been acquired by US companies, because “they know the market.”